Callinex Issues Annual Letter to Shareholders
Callinex Issues Annual Letter to Shareholders
VANCOUVER, BC
,
Jan. 16, 2025
/CNW/ -
Callinex Mines Inc.
("Callinex" or "the Company") (TSXV:
CNX) (OTCQX: CLLXF) is pleased to provide its 2024 annual letter to shareholders from President and
CEO,
Max Porterfield
:
Dear Shareholders,
I'm grateful for your support over this last year and I'm excited for what's to come as our team steadily
progresses our high-grade base and precious metals rich deposits, expands our newest discoveries and
hunts for additional opportunities on our newly expanded land package.
Our achieved objectives in 2024 positioned the Company to immediately begin moving forward with
advanced permitting, which will cut down on future development timelines, advance our newest discovery,
which could lead to significant resource growth well beyond what our team has outlined to date, and
unlock our newly acquired land package which could quickly deliver near surface discoveries. I'd like to
thank our shareholders, stakeholders and our team members for their contributions which collectively
made reaching all of these significant milestones possible.
In 2024, the Company completed critical engineering work on the Rainbow and Pine Bay deposits as well
as baseline studies at the Pine Bay Project to support submission of an Advanced Exploration Permit
("AEP"). This work comes on the heels of the 2023 Pine Bay Project NI 43-101 maiden resource
estimate, which included the high-grade Rainbow deposit with an Indicated Mineral Resource of 3.44 Mt
at 3.59% copper equivalent ("CuEq") and Inferred Mineral Resource of 1.28 Mt at 2.95% CuEq, as well
as the Pine Bay deposit with an Inferred Mineral Resource of 1.0 Mt at 2.62% Cu (see news release
July 10, 2023
).
Callinex's team has worked diligently in conjunction with AECOM, a consulting firm that's been key in the
permitting of numerous mines in
Manitoba
including Hudbay's Lalor and Reed mines. Engineering work on
Rainbow has been completed to build a ramp to the deposit to extract a 10,000 tonne bulk sample and
provide a platform for future underground exploration. To date, environmental baseline studies including
terrestrial (wildlife and vegetation), water and sediment quality and species at risk assessment, among
others have been completed. Currently a closure plan is being finalized and once complete will allow for
submission of the AEP application, anticipated to be done prior to the end of the first quarter 2025.
During the year exploration at the Pine Bay Project continued unimpeded despite the property being
engulfed by the significant wildfire that impacted approximately 80% of our expanded land package. The
Company's onsite facilities were destroyed and a large portion of the stored diamond drill core was lost
in the event. We are particularly grateful to the
Manitoba
government and emergency personnel who
immediately responded to the situation and made sure services were restored as soon as possible. The
unfortunate wildfire has provided us with a unique opportunity to get a better understanding of the
geology at surface as vegetation has been removed and the upcoming AEP is planning onsite
infrastructure to be located on areas that have been disturbed by this event.
The Company's exploration focus remained on the Descendent discovery that has continued to be
advanced through geophysics and step-out drilling, supported by a successful financing in
July 2024
.
Callinex started the year by completing a magnetotelluric geophysical survey ("MT") over the Descendent
and other key areas of the Pine Bay Project area. The results of the MT survey were successful in that
they gave further confidence that the Descendent continued at depth, further confirmed our exploration
model that the deposit is approaching a fold nose and highlighted a number of additional target areas to
be pursued.
The 2024 drilling campaign was concluded by testing the Descendent discovery with a
536m
step-out
diamond drillhole targeted to intersect vertically below and slightly to the north of discovery hole DSC-
111. The step-out hole, DSC-113, intersected a broad halo with
800m
of volcanogenic massive sulphide
("VMS") style alteration which included sericite, chlorite, silica, with disseminated sulphides which
increased downhole, with the last 400 metres commonly intersecting highly-altered (sericite and chlorite
schists) before reaching the Descendent horizon, all assays for DSC-113 are pending. Meanwhile, a
borehole pulse electromagnetic survey ("BPEM") is scheduled to be completed in the coming days. The
Descendent step-out hole was preceded by testing target area Poseidon where pending assay and
BPEM survey results are also pending.
In May, Callinex announced that it had doubled the Pine Bay land package through staking and the
signing of the Albert's Lake option agreement. The Pine Bay Project now encompasses approximately
120 square kilometers of highly prospective exploration ground and completely consolidates both the
Baker Patton as well as another large felsic package. Combined, the Pine Bay Project contains the
largest and most highly altered accumulations of surface exposed felsic volcanic rocks in the Flin Flon
Greenstone Belt, which is the host rock to the majority of the mines in the region.
On acquisition of our expanded Pine Bay Project area, our team immediately began permitting the
Alberts Lake area and working with Teck Resources Limited ("Teck") to extinguish an historic back-in
provision that had deterred any significant exploration on the property for over two decades. By
December, we were able to welcome Teck as a supportive Callinex shareholder together with other
considerations in-lieu of terminating the back-in provision and we also received a three-year exploration
work permit from regulatory authorities. Callinex is now compiling decades of historic data through
digitization and analysis, which is already yielding exciting new exploration opportunities.
Looking forward we are eager to complete the work necessary to submit the Advanced Exploration
Permit. We also await results from our ongoing exploration campaign which will guide our path forward to
delineating a high-grade resource at Descendent as well as our next steps at Poseidon. On our newly
acquired land package, we will continue to outline exciting exploration opportunities and to immediately
include these new targets in this year's exploration efforts.
I am pleased that both base and precious metals markets continue to be resilient and the supply and
demand situation indicates a positive year to come in 2025. Copper has remained buoyant above
$4.00
/lb despite potential macro-economic factors that could dampen demand but remains supported by
potential medium term undersupply and sensitivity to potential supply disruption. This is highlighted by the
historically low treatment charges, fees paid by miners to smelters for processing concentrate into
refined metal, which are depressed by a lack of mine supply. Gold meanwhile has several drivers
supporting a strong outlook during this year led by continued central bank buying and as a safe haven as
global uncertainty is certainly not going away. Both the base and precious metals are also a safe haven
when exposed to short-term weakening of the US dollar after an exceptionally strong 2024.
Thank you again for your continued support over the last year, we are eager to advance our objectives
and build upon the milestones we've reached to date.
Sincerely,
"Max Porterfield"
President & CEO
J.J. O'Donnell, P. Geo, a qualified person under National Instrument 43-101 and Exploration Manager for
Callinex, has reviewed and approved the technical information in this news release.
About Callinex Mines Inc.
Callinex Mines Inc.
(TSXV:
CNX
) (OTCQX
: CLLXF)
is advancing its portfolio of base and precious
metals rich deposits located in established Canadian mining jurisdictions. The focus of the portfolio is
highlighted by the rapidly expanding Rainbow deposit at its rich VMS Pine Bay Project located near
existing infrastructure in the Flin Flon Mining District. Callinex prepared an indicated mineral resource
on the Rainbow deposit of 3.44 Mt grading 3.59% CuEq for 272.4 Mlb CuEq (238.3 Mlb Cu, 56.9 Mlb
Zn, 37.6 koz Au, 692.8 koz Ag, 2.3 Mlb Pb), an inferred mineral resource on the Rainbow deposit of
1.28 Mt grading 2.95% CuEq containing 83.4 Mlb CuEq (72.1 Mlb Cu, 19.5 Mlb Zn, 11.1 koz Au, 222.2
Koz Ag
, 0.8 Mlb Pb) and an inferred mineral resource at the Pine Bay deposit of 1.0 Mt grading 2.62%
Cu containing 58.1 Mlb Cu (see news release dated
July 10, 2023
). The second asset in the portfolio is
the Nash Creek Project located in the VMS rich Bathurst Mining District of
New Brunswick
. A 2018 PEA
generates a strong economic return with a pre-tax IRR of 34.1% (25.2% post-tax) and NPV8% of
$230
million
(
$128 million
post-tax) at
$1.25
Zinc (see news release dated
May 14, 2018
). The third asset,
100% owned Point Leamington Deposit in
Newfoundland
, is located in one of the richest VMS and Gold
Districts in
Canada
. Callinex prepared a pit constrained Indicated Mineral Resource of 5.0 Mt grading
2.5 g/t AuEq for 402 koz AuEq (145.7 koz gold, 60.0 Mlb copper, 153.5 Mlb zinc, 2.0 Moz silver, 1.5
Mlb lead), a pit constrained Inferred Mineral Resource of 13.7 Mt grading 2.24 g/t AuEq for 986.5 koz
AuEq (354.8 koz gold, 110.2 Mlb copper, 527.3 Mlb zinc, 6.2 Moz silver, 7.0 Mlb lead) and an out-of-
pit Inferred Mineral Resource of 1.7 Mt grading 3.06 g/t AuEq for 168.5 koz AuEq (65.4 koz gold, 13.3
Mlb copper, 102.9 Mlb zinc, 1.4
Moz Ag
, 2.6 Mlb lead) (see news release dated
October 25, 2021
)
.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Some statements in this news release contain forward-looking information. These statements include,
but are not limited to, statements with respect to future expenditures. These statements address future
events and conditions and, as such, involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by the statements. Such factors
include, among others, the ability to complete the proposed drill program and the timing and amount of
expenditures. Except as required under applicable securities laws, Callinex does not assume the
obligation to update any forward-looking statement
.
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For further information:
For additional information, please contact: Callinex Mines Inc., Max Porterfield,
President and Chief Executive Officer, Phone: (604) 605-0885, E-mail: [email protected]
CO: Callinex Mines Inc.
CNW 08:30e 16-JAN-25